Foreign Account Tax Compliance Act (FATCA)

What is FATCA?

FATCA (Foreign Account Tax Compliance Act) is a law passed by the United States of America (US) to prevent US persons from using banks and other financial institutions outside the US for investment purpose in order to avoid US taxation on the income earned / generated from such foreign investments /wealth.

FATCA obliges such foreign (for US) banks and financial institutions (also Mutual Fund – Quantum MF) to report information about US persons having accounts with them. It is a financial reporting of assets owned by “United States Persons” to the “United States Tax Authorities”.

The data collected of U.S. Reportable Account will be reported to US Internal Revenue Service (IRS) or the Indian Tax Authorities for onwards submission to IRS. We would like to inform you that as per the FATCA, Quantum Mutual Fund is required to undertake due diligence process of all the investors including Indian Residents residing in India and Non Resident Indian (NRI) residing in USA or any other country to identify US Reportable Account.

Who can be called a US Person?

An individual account holder is treated as a US person if the account includes any of the following: • US Citizenship • Lawful permanent resident (green card) status / US Residents • A US birthplace / US Person • NRI individuals based in USA with residence address or a US correspondence address including a US PO box • Standing instructions to transfer funds to an account maintained in the US or directions regularly received from a US address • An `in care of` address or a `hold mail address` that is the sole address with respect to the client or • A power of attorney or signatory authority granted to a person with a US address.

Does it affect Indian Investors too?

No. The law is only applicable to US Citizens / Persons (as described above in Point 2).

I am a US citizen, what do I have to do to become FATCA compliant; what does FATCA means to me?

All category investors (individual / non-individual / corporate body) have to fill up the FATCA form to become FATCA compliant.

In case, you are a US citizen or considered to be a US Person (as described above in Point 2) you may be asked to provide us with the additional information / documentation. Further the details collected of US Reportable person / entity will be reported to US Internal Revenue Service (IRS) or the Indian Tax Authorities on an annual basis. Please note that though it is a one-time process, the form may get modified over time and you will have to update your details accordingly.

What is the impact of FATCA on my investments in Quantum Mutual Fund? Am I affected if I am not a citizen of US?

Banks and other Financial Organizations will be required to report information on financial accounts held directly or indirectly by US Persons on an annual basis.

Quantum MF has made a commitment to being fully FATCA compliant. Therefore we will be reviewing our existing customer base to confirm the FATCA status and wherever necessary we may have to contact our investors for further information and documentation based on guidance from the regulator. So though you are not a US based investor you may require to become a FATCA complaint investor.

I have already submitted the FATCA form. Do I need to submit it again?

If you have submitted the FATCA form duly signed and filled with proper details then you may not require re-submit the same.

Please note that though it is a one-time process, the form may get modified over time and you will have to update your details accordingly.

I have multiple folios with Quantum Mutual Fund. Do I need to submit the FATCA form for individual folio?

In case you have multiple folios with us, with the same mode of holding pattern wherein the joint holders are also same, you may commonly fill up only one FATCA form mentioning all of your Folio numbers so that the status of FATCA will be updated against your respective Folios.

In case if the holding pattern changes, you will have to fill separate form for each folio.

How frequently will I have to provide information for FATCA purposes?

Initially you have to submit the FATCA form only once for you Folio but as FATCA is an ongoing process so if your folio information changes, we may be required to contact you to obtain additional information so that we are able to update your account classification under FATCA.

The FATCA form may get modified over time as per the regulatory requirement and you will have to update your details accordingly.

What incase if an investor refuses to provide the FATCA requisite information?

New investors will have to mandatorily submit the FATCA declaration along with the initial purchase / SIP application form. Failing to this, application will be rejected with effect from 1st November 2015.

Existing investors will have to submit the FATCA declaration form either soft / physical copy in order to get FATCA compliant. We would like to inform you that as per the FATCA, Quantum Mutual Fund is required to undertake due diligence process of all the investors including Indian Residents residing in India and Non Resident Indian (NRI) residing in USA or any other country to identify US Reportable Account.

However SIP and STP mandates registered till October 31, 2015 will be exempted.

Who are required to submit the FATCA?

All categories of existing investors and prospective investors (individual / non-individual / corporate body including Joint Holders, HUF, Guardian in case of Minor and Power of Attorney Holder) are required to become FATCA compliant.

How do I update my FATCA details online?

• To update your FATCA details, login to the Invest Online portal with your User ID and password. • Navigate to the Transactions tab in the top bar. Select “FATCA Details” tab from the dropdown menu appearing. • You will be asked for the Transaction Pin. The Transaction Pin can be generated online in a few quick steps by following the instructions in the “Obtain PIN” tab under My Profile option. • After filling all details in the FATCA form and upon submission the same will be updated in the selected folio.

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